Question: JK Company produces two products, Plush and Supreme. JK Company can sell all of the units it can produce for both products, but it has
JK Company produces two products, Plush and Supreme. JK Company can sell all of the units it can produce for both products, but it has limited production capacity. Machine hours per unit are 0.25 hours for Plush and 0.50 hours for Supreme, and the company has 3,100 machine hours available. Contribution margin per unit is $225 for Plush and $311 for Supreme. What is the most profitable sales mix for JK Company?
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